Assume the government sets a price ceiling, or maximum price800 rent per month Based on the graphwhat will be the outcome of thi

Question

Leni [432]

1 year ago

9

Assume the government sets a price ceiling, or maximum price800 rent per month Based on the graphwhat will be the outcome of thi

s price

Business

1 answer:

Semmy [17] · Answer 1 · 2023-08-04T15:52:57+03:00

The outcome of the ceiling price $800 rent is that the quantity supplied will remains at the same.

<h3>What is a price ceiling?</h3>

This refers to a price order by the government that keeps a price from rising above a certain level known as the “ceiling”.

In the graph, the horizontal line at the price of $800 shows the maximum price set by the rent control law.

The forces that shifted the demand curve to the right are still there, but, at this price, the quantity supplied will remains at the same 15,000 rental units although the quantity demanded is 19,000 rental units.